On November 13, New York City-based Aurelius Capital Management disclosed a new position in Cipher Mining Inc. (CIFR 2.83%), acquiring 500,000 shares valued at approximately $6.3 million.
What Happened
Aurelius Capital Management initiated a new position in Cipher Mining Inc. (CIFR 2.83%), purchasing 500,000 shares during the third quarter, according to a filing with the Securities and Exchange Commission dated November 13. The stake, valued at $6.3 million at quarter-end, comprised 11.4% of the fund’s $55.2 million in reportable U.S. equity assets.
What Else to Know
The new position now reresents 11.4% of total 13F assets under management.
Top holdings after the filing:
- NASDAQ:BITF: $19 million (34.4% of AUM)
- NASDAQ:CORZ: $8.4 million (15.3% of AUM)
- NASDAQ:CIFR: $6.3 million (11.4% of AUM)
- NASDAQ:WULF: $5.1 million (9.3% of AUM)
- NASDAQ:RIOT: $4.5 million (8.2% of AUM)
As of Friday, shares of Cipher Mining were priced at $16.21, up 182% over the past year and significantly outperforming the S&P 500's 16.5% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Friday) | $16.21 |
| Market Capitalization | $6.4 billion |
| Revenue (TTM) | $206.5 million |
| Net Income (TTM) | ($70.5 million) |
Company Snapshot
- Cipher Mining operates bitcoin mining facilities and provides technology services focused on cryptocurrency mining, with revenue primarily generated from mining and selling bitcoin.
Cipher Mining Inc. is a U.S.-based technology company specializing in bitcoin mining, leveraging advanced infrastructure and energy management to scale operations efficiently. The company pursues growth through expanding its mining capacity and optimizing operational efficiency to maintain competitiveness in the evolving digital asset sector. Cipher Mining's strategic focus on cost-effective, high-volume bitcoin production positions it to capitalize on increasing institutional and market demand for digital assets.
Foolish Take
This portfolio has really leaned hard into a sector thesis, with the vast majority of its reported assets concentrated in publicly traded bitcoin miners and infrastructure operators. Within that context, this position sits between the fund’s largest holding and other mining names, reinforcing a high-conviction view that scale and power access will define the next phase of the cycle.
That thesis aligns with Cipher Mining’s most recent quarter. The company reported third-quarter revenue of $72 million and adjusted earnings of $41 million, a sharp contrast to the losses that defined prior crypto downturns. More importantly, Cipher is no longer positioning itself as a pure bitcoin price lever. Management disclosed roughly $8.5 billion in long-term AI hosting lease payments, including a 15-year agreement with Amazon Web Services to deliver 300 megawatts of capacity beginning in 2026, and majority ownership in a planned 1-gigawatt West Texas site. Ultimately, this certainly looks like a bet that crypto and AI infrastructure can justify durable capital allocation even after a steep run.
Glossary
13F reportable assets: U.S. equity securities that institutional investment managers must disclose quarterly to the SEC.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Position: The amount of a particular security or asset owned by an investor or fund.
Initiated a new position: When an investor or fund purchases a security it did not previously own.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Outperforming: Achieving a higher return than a benchmark or comparable investment over a given period.
Net loss: When a company's total expenses exceed its total revenues over a specific period.
Mining capacity: The total computational power a company dedicates to cryptocurrency mining operations.
Operational efficiency: The ability to deliver products or services using the least amount of resources.
Institutional demand: Interest and investment in an asset class from large organizations like funds, banks, or endowments.
Digital asset sector: The industry focused on cryptocurrencies, tokens, and other blockchain-based assets.
Quarter-end: The last day of a fiscal quarter, used as a reference point for financial reporting.
